Republicans continue to criticize Democrats for dragging their feet when it comes to the long-awaited crypto Clarity Act.
Speaking to Fox News on Tuesday, Senator Bill Hagerty said that the U.S. could not afford to fall behind the rest of the world with digital asset regulation.
Lawmakers have just the next two days to vote on the Clarity Act before the Senate goes to recess. A bipartisan draft of the bill has been circulating among lawmakers but a number of Democrats are being pernickety over wording in the bill, say some Republicans.
“I think the problem is, will we be able to pass this with Democrats right now, or are they going to let midterm politics get in the way,” Hagerty said.
He added: “Everything is moving digital around the world. The Genius Act was a major step forward to make certain that the digital dollar remains dominant in the world, but we need to follow it up with the remainder of the market. We’re going to have to pass the Clarity Act.”
Still, Republican majority leader John Thune told reporters on Monday that the bill would likely get at least an initial vote this week — despite lawmakers being inundated with other pieces of legislation.
A number of major financial institutions, lawmakers and companies have thrown their weight behind the new bill, which was passed in the house of representatives last year with strong bipartisan support.
Still, a number of Democrats have expressed concerns around the wording in the bill, saying in a statement that it needs work.
Republicans have alleged that this is just Democrats playing politics, and that the bill has already had a lot of changes.
Pro-crypto Senator Cynthia Lummis in particular has said that Democrats are deliberately holding back the bill.
Speaking on Fox Business Tuesday, former Republican Senator Pat Toomey mentioned that it was urgent to get the bill passed this week.
“I think it’s essential that the Senate pass this legislation this week,” he said. “The technology of the blockchain is very powerful — it has the ability to transform finance and I think other parts of our economy, but there needs to be legal clarity.”
The Clarity Act has been in a deadlock for much of 2026, partially the banking lobby raised concerns over stablecoin yield.
An updated bill of the Clarity Act was introduced in July addressing ethics concerns. It now bans government officials and their families from issuing or promoting crypto.
If passed, the Clarity Act would create a regulatory framework for the cryptocurrency market.